GSG Hukuk and PwC Türkiye Host Seminar on International Trade Sanctions and Risks Exposure on Turkish Companies

On January 15, 2025, Nisanur Hekimoğlu, in her capacity as Subject Matter Executive in Sanctions Compliance and International Arbitration at GSG Hukuk, a PwC Türkiye network law firm, delivered an in-depth seminar on “The Effect of International Trade Sanctions and Risks Exposure on Turkish Companies” alongside Gökhan Yılmaz, Forensics, Compliance, and Crisis Management Services Leader at PwC Türkiye. The event provided a strategic and regulatory overview of sanctions regimes and their impact on Turkish businesses, offering practical risk mitigation strategies through compliance frameworks.

The seminar covered key aspects of international trade sanctions, with a particular focus on the US, UK, and EU sanctions against Russia and Iran. Hekimoğlu examined the legal and economic consequences of sanctions violations, the nexus that establishes jurisdictional reach, and the distinction between primary and secondary sanctions. The discussion emphasized high-risk sectors, including defense, aerospace, machinery and equipment, electrical and electronics, logistics, automotive, energy, and manufacturing, all of which are increasingly targeted by sanctions measures.

A notable segment of the seminar addressed the latest SDN designations imposed by the Biden administration on Turkish entities and individuals, along with a comparative analysis of sanctions policies under the Obama, Trump, and Biden administrations. Hekimoğlu also provided insights into the future trajectory of global sanctions regimesand their potential implications for Turkish businesses. Direct and indirect risks—such as reputational risks and business conduct concerns—were analyzed with sector-specific insights.

Beyond trade sanctions, the seminar highlighted the importance of export control regulations and their interplay with sanctions compliance, drawing attention to the heightened enforcement risks faced by Turkish entities engaged in international trade.

One of the most insightful discussions centered on contractual risk management mechanisms essential for sanctions compliance. Hekimoğlu provided a detailed analysis of key contractual provisions, including cost allocation, force majeure and Material Adverse Change (MAC) clauses, contractual freeze, suspension, and termination rights in response to sanctions developments, as well as the impact of sanctions on dispute resolution, particularly from an arbitration perspective.

The seminar concluded with an overview of PwC Türkiye’s sanctions compliance services, emphasizing transaction risk analysis, KYC due diligence processes, and corporate compliance strategies designed to help Turkish companies navigate the complexities of international sanctions.

With GSG Hukuk’s expertise and PwC Türkiye’s global compliance capabilities, the session reinforced the critical need for proactive risk management and regulatory alignment in an increasingly complex sanctions environment.

For further insights on sanctions compliance, arbitration, and risk management strategies, stay connected with GSG Hukuk and PwC Türkiye.